Can a Financial Advisor Be a Notary?

A financial advisor can be a notary but it’s more common and more useful to have an employee be a notary. The employee would have to file it as an Outside Business Activity with their firm. Every state has different notary laws so be sure to check if yours allows it.

Notaries are not allowed to notarize documents that are related to them. However, it is allowed, in most states, to notarize for your employer. As long as the public notary does not have a direct conflict of interest such as a commission, an increase in pay, or is a company officer. This means that a financial advisor can’t notarize a contract between a client and themself. But a financial advisor’s employee may be able to notarize the document if they’re a notary public.

If a financial advisor or a registered investment advisor employee wanted to become a notary, that would count as an OBA. An OBA, Outside Business Activity, is what it sounds like. A registered investment advisor (or their representative) must report their outside businesses or other employers to FINRA, SEC, or the state (whoever regulates you as an investment advisor). Here’s an article about an LPL advisor who got sanctioned for not reporting their notary business.

If an employee isn’t a registered advisor, like a paraplanner or secretary, then you wouldn’t need to file an OBA. You only need to worry about reporting your Outside Business Activities when you’re registered as a representative of an investment advisor or a broker-dealer.

In practicality, it’s not necessary or even all that beneficial to have a notary on staff. It’s convenient in theory. But getting something notarized is already convenient. You can get something notarized online for around $25. You could notarize a document for free at a nearby bank. If your firm requires notarization often, then paying for one of your employees to get notarized could be worth it. But for many firms there’s not much benefit and it creates some legal risk.

Curious how fast you can get into financial planning? Here’s how long it takes to become a Financial Advisor.

How Do You Become a Notary?

To become a notary, you need to complete an application, pass an exam, and obtain a bond and a seal. The exact process and fees vary by state, so you should check the official website of your state’s notary public administrator for the specific steps and requirements.

Here are some general steps that you need to follow to become a notary:

1. Meet the eligibility criteria. Most states require you to be at least 18 years old, a legal resident of the state, and have no criminal record. Some states may also require you to be a U.S. citizen, have a high school diploma or equivalent, and complete a background check.
2. Complete an application form. You can usually find the application form online or at your local county clerk’s office. You will need to provide your personal information. You may also need to provide some references and pay an application fee.
3. Pass an exam. Some states require you to take and pass a written exam that tests your knowledge of notary laws and procedures. You can prepare for the exam by studying the notary handbook or taking an online course.
4. Obtain a bond and a seal. A bond is a type of insurance that protects the public from any mistakes or misconduct that you may commit as a notary. The amount of the bond varies by state, but it is usually between $5,000 and $25,000. You can purchase a bond from an insurance company or a bonding agency. A seal is a device that stamps your name, commission number, and expiration date on the documents that you notarize. You can buy a seal from an office supply store or an online vendor. Both of these may cost anywhere from $50-$100.
5. Take an oath of office. The final step is to take an oath of office before a designated official, such as a judge, clerk, or commissioner.

Once you become a notary, you can start offering your services to your clients and other people who need them. You will need to follow the rules and ethics of being a notary, such as verifying the identity of the signers, keeping a record of your notarial acts, and charging reasonable fees. You will also need to renew your commission periodically and update your information if anything changes.

Becoming a notary can be a rewarding and profitable career choice for financial advisors. It can help you serve your clients better and stand out from the competition.

Don’t have a Bachelor’s degree? I wrote a guide on how to become a Financial Advisor with an Associate’s degree.